You are talking to a friend who learned you just accepted a job as an auditor with a firm that

You are talking to a friend who learned you just accepted a job as an auditor with a firm that specializes in auditing governmental entities. “That’s great!” your friend said. “Government entities do not have to follow GAAP or use accrual accounting. They don’t even depreciate assets like normal businesses do. But, I think they do have to follow the new IFRS rules for recording all leases as fixed assets and liabilities on the balance sheet.” Comment on your friend’s observations regarding accounting and reporting rules for government entities, and any developments regarding leases.